Santiment: Crowd Fear Triggers Bitcoin Bounce, $70K Rally in Focus

Bitcoin (BTC) slipped to round $60,000 earlier as we speak earlier than rebounding towards $65,000, following one of many sharpest each day sell-offs in its historical past.

The transfer has cut up merchants between these calling the rebound a brief technical response and others pointing to excessive worry as a setup for a restoration towards $70,000.

Fear Spikes as Bitcoin Rebounds From Sell-Off

On February 6, Santiment noted that social media mentions calling for Bitcoin to go “decrease” or “under” shot up after the drop to $60,000, a sample the analytics agency stated typically seems close to short-term value rebounds.

The asset did certainly bounce again to about $65,000, with the uptick coming after what The Kobeissi Letter described as BTC’s first-ever each day drop of greater than $10,000, alongside claims that a big leveraged place had been liquidated.

“Is this nothing however a lifeless cat bounce?” Santiment requested, whereas positing that sufficient retail could have been shaken out to justify a fast rally again as much as the $70,000s.

The sell-off capped weeks of heavy draw back strain, as CryptoPotato beforehand reported, with Bitcoin wiping out features seen after Donald Trump’s re-election and dragging most main altcoins decrease. XRP fell 13% on the day, whereas Ethereum, Solana, and BNB additionally posted steep losses.

Meanwhile, on-chain and derivatives information are portray a combined image beneath the rebound. According to DeFi commentator Marvellous, “sensible cash” has taken a internet brief place, whereas whales and public figures are adopting lengthy positions. The market watcher argued the transfer regarded extra like a mechanical response after $2.2 billion in lengthy liquidations than renewed conviction, noting that open curiosity remained elevated and funding charges had stayed flat.

Elsewhere, dealer Sykodelic highlighted a lopsided liquidation map, claiming the market had cleared most lengthy positions, leaving roughly $29 billion in shorts versus about $100 million in longs over a one-year view.

Price Action Shows Heavy Damage Despite Short-Term Bounce

Bitcoin was buying and selling across the $65,000 stage on the time of writing, down practically 9% in the final 24 hours and greater than 21% over the previous seven days. Across the earlier month, the losses stand near 30%, pushing BTC about 48% under its peak from October 2025, when it surpassed the $126,000 mark.

Analysts from CryptoQuant have stated that the present downturn is developing quicker than the 2022 bear market, with their information exhibiting the OG cryptocurrency fell 23% inside 83 days of shedding its 365-day transferring common, in contrast with a 6% decline over the identical interval in early 2022.

Santiment added that sentiment towards each Bitcoin and Ethereum (ETH) had turned “extraordinarily bearish,” a situation that may coincide with short-lived reduction rallies when retail worry stays elevated.

For now, merchants stay divided. Some see the focus of brief positions and fearful sentiment as gas for a transfer again towards $70,000, whereas others have warned that with out a collapse in open curiosity and extended sideways buying and selling, the current bounce could solely be the precursor to a different check of decrease ranges.

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